New power firms mak­ing N23bn monthly, says FG

Daily Trust - - BUSINESS / NEWS - By Hamisu Muham­mad

The new elec­tric­ity dis­tri­bu­tion com­pa­nies are gen­er­at­ing be­tween 20 and 23 bil­lion naira monthly based on cur­rent rev­enue pro­file, Chair­man, Pres­i­den­tial Task Force on Power, Engr. Reynolds Beks Da­gogo-Jack, has said.

Speak­ing yes­ter­day at the Chief Ex­ec­u­tives Round­table meet­ing on sec­toral link­age op­por­tu­ni­ties or­gan­ised by the Nige­rian Con­tent De­vel­op­ment and Mon­i­tor­ing Board in Abuja, Da­gogo-Jack said the about N380bn spent on pay­ing the sev­er­ance pack­ages of ex-PHCN work­ers may just be 16 months cost based on the rev­enue in­voice.

“As I speak to you, our monthly rev­enue pro­file or in­voice pro­file in the mar­ket at 4,000 mw is in the re­gion of 20 - 23 bil­lion Naira, which means what we paid Labour can be seen as 16 months cost.”

He said the post privi­ti­sa­tion pe­riod is very crit­i­cal and people should ex­er­cise pa­tience be­fore they start reap­ing the ben­e­fits.

“A lot of people ar­gued that the mo­ment privi­ti­sa­tion takes place; there should be 24-hour elec­tric­ity sup­ply. That is not true and it’s good that we man­age our ex­pec­ta­tions, be­cause look­ing at the po­lit­i­cal will that took us to the point in trans­form­ing the mar­ket from pub­lic own­er­ship to pri­vate own­er­ship, we need an equal level of po­lit­i­cal will to sta­bi­lize the pri­vate mar­ket.”

He said this stage is the most vul­ner­a­ble stage of pri­va­tised mar­ket, and “if we didn’t have the po­lit­i­cal will to sus­tain the ma­tu­rity of that mar­ket in this vul­ner­a­ble stage, it can fall in an­other di­rec­tion.”

Ac­cord­ing to him, from all the projections and com­pu­ta­tions, “Nigeria needs about 20,000mw to be in the 20 big economies by the year 2020 and to achieve that, there should be huge in­vest­ments across the value chain, in gen­er­a­tion, trans­mis­sion and gas, and we are look­ing at the re­gion of $20 bil­lion be­tween now and then.”

Ear­lier, the Ex­ec­u­tive Sec­re­tary of the NCDMB, En­gi­neer Ernest Nwapa, said such in­ter­ac­tion is very im­por­tant in or­der to share suc­cess sto­ries from all the stake­hold­ers con­cerned.

He said the fo­rum gave them op­por­tu­ni­ties to dis­cuss mech­a­nisms for achiev­ing struc­tured in­ter-agency col­lab­o­ra­tion to max­i­mize in-coun­try value cre­ation through op­ti­miza­tion of ca­pac­i­ties de­vel­oped by the var­i­ous agencies over the last four years since the NCDMB Act was en­acted.

Engr. Reynolds Beks Da­gogo-Jack

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